If we talk about transnational organizations, we can say all transnational organizations are
multinational organizations but all multinational organizations are not transnational organizations.
Every thing has its own advantages and disadvantages and transnational organization also have
some pros and cons. Globalization is the major reason for transnational organizations to exist in
world because it made too easy the movement of money, people and material across the globe.
If we talk about that is it true that transnational organization are crystal of growth. So according to
facts it is to prove my point I would like to narrate few examples. Transnational organizations
become the reason to lower down the unemployment because they usually create job opportunities
for locals which help them increasing their standards of life. They bring their culture to other parts
of globe so people can enjoy diversity because its not possible for everyone to travel across the
globe. They also help in improving education and skills of people. They become the reason to
explore natural resources and use for the benefits of people. They bring investments to the country
they are going to operate in. They do business and support the economy of that country. They earn
revenue and give taxes to the government. They bring quality of products and bring competition
in market so that everyone tries to do their best to gain more market share and because of this
locals get best products and services. They can become the reason to weaken the monopoly of
different firms. There are many more benefits of having transnational companies in world.
When there are advantages there are disadvantages too of having transnational firms. Few
examples are that because of them local industry get negative impacts, they bring so much
competition that sometimes locals cant compete and they get out of the race lose their market share
to these transnational firms which can be the reason of unemployment for the workers working in
that firm, TNC tries to exploit natural resources more than they are allowed by the states, they have
lots of money so they tie up with corrupted government official and create monopoly just and
because of this there is negative impact on local industry and people, profit earned from the local
market are sent overseas rather than spent on locals.
I personally believe that Transnational organizations are crystal of growth if they are monitored
with proper rules and regulation because in that case there are less chances of negativity. As I said
before everything has its own pros and cons so transnational organizations have their own
advantages and dis advantages. It doesn’t mean that they are too bad for the locals but if proper
laws and regulations are taken into consideration so these disadvantages can be reducing and then
TNCs will beneficial for the states.
Review Time 